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Investment bonds – also known as insurance bonds – are long-term tax paid investments. Investment bonds have a minimum term of 10 years, but this can be extended at any time to a maximum of 40 years, without forfeiting the right to withdraw the investment at any time. Earnings are taxed at a fund manager level, at a maximum rate of 30%, and provided the investment is held for at least 10 years, no additional tax is payable by the investor. This makes investment bonds a tax-effective investment strategy – especially for those with a high marginal tax rate of up to 46.5% (including the Medicare levy of 1.5%) – and simple too – unless the investment is withdrawn within 10 years investors are not required to report earnings in their annual tax return.
2020 DIRECTINVEST will rebate 100% of the entry fee on investment bonds in Australia – a saving of up to 4%. For independent star ratings and performance on investment bond funds, please visit Find a Fund. If you are interesed in investing in an investment bond that is not featured on this page, please contact us.
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Find out more about investment bonds including information on the tax treatment of withdrawals made within 10 years of the initial investment and the 125% rule for making additional investments, as well as estate planning and investing for children.
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| Entry Fees | Entry fees are optional. Are you paying entry fees on existing managed funds?
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